There is a war brewing. The face of it looks like cable providers (aka Comcast) vs. internet browsers (aka Google). For the consumer, what good is an open and free internet if the byways to get there are controlled by a monopoly that will cost all of us dearly. Will it be a monthly charge the price of a luxury car payment? Will it be a pound of flesh in personal data that turns your life into a commodity? After national healthcare, we will need national communication care. Until that time, the underlying infrastructure is a growth industry--no matter what scenario prevails. AFOP represents one piece.

Alliance Fiber Optic Products (AFOP) designs and manufactures components used in the connection of optical fibers and optical fiber networking solutions. Over the past couple days the stock fell 23% after the company reported supposedly "disappointing" results.

** The company is growing like nuts. Sales expanded 63% in 2013. In the first three quarters of 2013, the company produced $12.23 million in operating cash flow, compared to $9.34 million produced in all of fiscal 2012.

** Peter Chang -- founder of AFOP in 1995 -- serves as Chairman, CEO, and President. Chang is largest insider owner of the business, owning 2.13 million shares of the stock.

** Management expects sales to increase by at least 85% in the 1Q 2014. In other words, there are no signs the company's growth is slated to stop anytime soon.

** The stock is trading at a P/E just under 12.5. Are you kidding me?

** $46.68 million in cash with no debt.

** This is a tiny and, basically, unfollowed business. One lonely analyst follows the company (which has a market cap of just $221 million). That one analyst, for what it's worth, anticipates AFOP's earnings will grow 25% annually over the next five years.

All in all, AFOP is a business that is rapidly growing its top and bottom lines, shows no signs of letting up growth, has a strengthening balance sheet thanks to stellar cash flow production, and an active/experienced founder and leader. That's a lot to get for a P/E under 13.

Micro caps can be tricky to evaluate (and very volatile, as AFOP's performance today demonstrates), but AFOP seems to have solid financial growth, involved management, and bright prospects trading at a very reasonable valuation. Outperform.

This stock has underperformed in 2011 relative to 2010, a sound year for stocks. Even though this decrease isn't substantial, it's still enough to count on low to moderate declines ($.20 - $.30 per share) consistently in 2012.